The conclusion is one I knew. Renovate for yourself, not for investment purposes. I improve my house based on equity increase matching the cost and not more.
MondoShlongo on
Wow. There is no reason whatsoever to spend money to fix up your house before selling. Good to know.
bgreen134 on
I think it should be noted what kind of home renovation. Investing in updating kitchen and bathrooms has a bigger ROI than replacing carpet. Not all renovations are equal in terms of ROI.
Alarming-Inflation90 on
So what you’re saying is, house flippers are ruining the starter home market for nothing.
fu-depaul on
Places with housing shortages get more value for a renovation as most homes will be older so updated ones stand out with less competition with modern amenities from new builds. Â
Places where they build homes get less value from renovations because if a home doesn’t meet your needs you can just build one that does.  No need for a home addition and if you want an updated kitchen you can just build a custom home to get it. Â
ug2215 on
It really depends on the house you’re renovating and what you’re doing. I bought a house in 2017 for $180,000 and put $30,000 dollars into it and then had it valued by may bank (to stop paying PMI after putting 10% down) at $240,000. I got roughly $2 in value increase for every $1 spent on renovation.
I get that taking an otherwise retail-ready home and spending $10,000 on a kitchen may not have the same effect, but I also don’t love how an “average” like this obscures the fact that buying an ugly house and investing in it can yield great returns. It disappoints me that part of why house flipping is so profitable is that people only want to buy “retail ready”. It’s hard work / stressful, and having the funds and time to make it work are a luxury I was lucky to have, but I think it’s important for people to know it’s possible to get a significant positive return on renovating a house that lacks curb appeal.
8 Comments
data from [https://todayshomeowner.com/home-finances/guides/roi-of-remodel/](https://todayshomeowner.com/home-finances/guides/roi-of-remodel/)
created with [https://datahiiv.com/](https://datahiiv.com/)
Hawaii you can damn near renovate for free
The conclusion is one I knew. Renovate for yourself, not for investment purposes. I improve my house based on equity increase matching the cost and not more.
Wow. There is no reason whatsoever to spend money to fix up your house before selling. Good to know.
I think it should be noted what kind of home renovation. Investing in updating kitchen and bathrooms has a bigger ROI than replacing carpet. Not all renovations are equal in terms of ROI.
So what you’re saying is, house flippers are ruining the starter home market for nothing.
Places with housing shortages get more value for a renovation as most homes will be older so updated ones stand out with less competition with modern amenities from new builds. Â
Places where they build homes get less value from renovations because if a home doesn’t meet your needs you can just build one that does.  No need for a home addition and if you want an updated kitchen you can just build a custom home to get it. Â
It really depends on the house you’re renovating and what you’re doing. I bought a house in 2017 for $180,000 and put $30,000 dollars into it and then had it valued by may bank (to stop paying PMI after putting 10% down) at $240,000. I got roughly $2 in value increase for every $1 spent on renovation.
I get that taking an otherwise retail-ready home and spending $10,000 on a kitchen may not have the same effect, but I also don’t love how an “average” like this obscures the fact that buying an ugly house and investing in it can yield great returns. It disappoints me that part of why house flipping is so profitable is that people only want to buy “retail ready”. It’s hard work / stressful, and having the funds and time to make it work are a luxury I was lucky to have, but I think it’s important for people to know it’s possible to get a significant positive return on renovating a house that lacks curb appeal.